What have they done to our money? š„
Interestingly, the author blames the boomers' excessive lifestyle for the situation. This is a new perspective to me...
Inflation isnāt printing money, itās borrowing money. Thatās how the money is created. And the private economy is still, to this day, considerably larger than the public one.
Thatās a strange sentence, because money is created in both ways. In fact, the treasury has been printing lots of physical cash lately, because the Fed is not easing up on its monetary policy.
Itās certainly true that most money is created through borrowing, but thatās a very poor way to make that point.
I just feel if the boomers had been better educated about money, their finances wouldnt be so poor.
Imagine the innovation they could have driven if they had invested their money wisely.
The way Boomers manage their finances drives my wife and I nuts. Of course, we're specifically thinking about our parents.
Yes, its crazy.
I feel they really stagnated after being able to improve their quality of life for a little while.
No wonder they all seem to have a midlife crisis.
One of their generational traits was a willingness to take big chances in pursuit of their dreams.
That can really allow for rapid gains in quality of life, but it's not the best approach to personal finance.
They seemed more interested in fitting the mold instead of breaking it.
Mindless workers for 40 years.
The description seems to be universal, applies in my country, and even to my parents. But, what we should be asking ourselves is: what caused that? what promoted such behaviour? From my perspective, what seems to promote that are stagnant societies, where things seem to not to change, so fitting is appropriate, for breaking the mold leads nowhere.
Two questions:
One observation:
It's quoted, I don't say it, the author of the blog post does. I think it's because he sees borrowing as the primary cause of the expansion of the money supply.
Public economy is a reference to the economic activities controlled by the public sector, i.e. the government.
I think that is what the screenshot implies.
The original meaning of āinflationā was money creation, so you are not correct about that.
The entire Austrian Economics tradition still uses the term in its original meaning.
I didn't say that inflation isn't creating money, I said that the expression is incomplete!
I vow for the Austrian principles.
Sorry, I misunderstood your point.
It would still be correct to say that printing money is inflation, but it's only one form of it.
What you mean with "one form of it"?
Money can be created either by directly printing it or through creation of new debt.
"We ain't getting paid commission, minimum wage, modern day slave conditions
Got me flippin' burgers with no power
Can't even buy one off what I make in an hour"
ā Dead Prez - Hell Yeah (Pimp the System) (released in 2004)
Consumers willing to borrow and spend is a sign of good economy, until it becomes over leveraged and implode.
And low rates that encourage borrowing, is the main causes of it. So yes it isn't really about printing money (bank reserves), but that pretty much is what most countries do nowadays, open market operations.
My biggest nightmare is that we never quite recovered from 2008, we have low rates and low growth (compared to pre 2008).
Interesting.
All brought on by the boomers?